Frequently Asked Questions

The vehicle financial products offered under Volvo Car Financial Services are provided by Macquarie Leasing. Eligible customers will enter into an approved finance contract with Macquarie Leasing, not Volvo Cars.

Macquarie Leasing has been granted permission to use Volvo Car Financial Services, the Volvo Car Future Value name and other Volvo trademarks under agreements with Volvo Cars.

What is a Comparison rate for Personal Customers?

A comparison rate helps you work out the true cost of a loan as it includes the interest rate, and most fees and charges combined in one figure. The comparison rate for a car loan is typically standardised by being based on a $30,000 loan amount, paid over 5 years. This allows you to compare finance offers from different lenders who have different interest rates and fees.

However, comparison rate applies only to the example provided and may not include all fees and charges. This means that different amounts and terms can result in different comparison rates.

What is a secured loan?

A secured loan is when the finance provider takes security over the asset which typically is the asset being financed, here your new car.

If you were unable to repay the loan, the finance provider can sell your car to cover some or all of the outstanding debt. Secured loans are less risky for finance providers, which means you may be able to get a lower interest rate than other loan types (such as unsecured).

How is my rate determined?

The interest rate for your car loan is set by Macquarie Leasing based on information you provide in your application. A combination of factors will determine the rate that you are eligible for including:

•The age of the car

•property ownership

•the amount you’re borrowing relative to the value of the car (the loan-to-valuation ratio, or LVR)

•the term of your loan.

These factors are used to help determine if you can meet your loan obligations, including any balloon payment.

What is a Balloon Payment?

A balloon payment is the final amount owing at the end of a loan’s term, after all monthly or fortnightly repayments have been made. Eligible customers may include a balloon in their loan to reduce their regular repayments@. However, this leaves a final lump sum that must be paid at the end of the loan.

When a balloon payment is due, you may have three options:

1. Sell or trade-in your Volvo and use the proceeds to pay the balloon. Any remainder that may not be covered from the proceeds of the sale/ trade-in must also be paid to finalise the loan.

2. Refinance your balloon payment !

3. Own your Volvo outright by making your final payment.

The maximum value of a balloon is dependent on your financial situation, the age of the car being bought and the loan term. This can range from 30 per cent of the purchase price for new cars over a five year loan term, to 40 per cent of the purchase price for new cars over a one year term.

Important: Before committing to a loan with a balloon, you should understand the total cost of the loan and consider your personal circumstances. It may be necessary to consult your accountant or financial adviser.

What fees and charges apply?

Fees and charges apply to the establishment and through lifetime of your car loan. Details of the fees payable are available on request from Volvo Car Financial Services and outlined in your finance contract.

Can I make additional payments?

You can make additional payments on a Consumer Loan contract. If you choose to make additional payments on a Volvo Car Financial Services car loan, you must still make the scheduled repayments on their due date for payment, until the outstanding amount is paid in full. If the contract is paid out before the loan term this can result in early repayment fees. Refer to the loan agreement for more details.

Can I pay out my loan early?

Yes. If you pay out your Consumer Loan before your contract’s final payment date, early repayment fees will apply. Refer to the loan agreement for more details.

Do I have to pay a deposit?

Depending on the credit assessment, a deposit may be required

What happens when I get near to the end of my loan term?

Volvo Car Financial Services will contact you near to the end of your loan term to help guide you through the end of term process. Volvo Cars, or a Volvo Cars dealer, may also be in touch about arranging a test drive for a new Volvo.

Can I manage my financial services online?

Volvo Car Financial Services is dedicated to customer satisfaction. At commencement of your contract, sign up to YourLease by visiting www.yourlease.com.au.

Everyone is different. So, before acting on any of the information on this website or provided by a Volvo dealer, you should think about how the product fits into your budget for the length of the loan. You should understand the total cost, what happens if you cannot make your repayments and any fees and charges that may apply. Please seek independent financial and tax advice and consider whether the product is right for you.

@Terms and conditions apply. Balloon payment is optional and is subject to satisfactory credit assessment and lending criteria!Refinancing a balloon is not guaranteed and requires a new credit assessment